2010 (8) TMI 232

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....e-tax Act, 1961 (for brevity "Act, 1961") challenging the order dated June 23, 2009 passed by the Income-tax Appellate Tribunal (in short "Tribunal") in I. T. A. No. 1915/Del/2009, for the assessment year 2006-07.   2. Ms. Prem Lata Bansal, learned counsel for the Revenue submitted that the Tribunal had erred in law in holding that the profit earned by the respondent-assessee on sale of sh....

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.... relevant facts and the findings of both the authorities below. The assessee in his individual carries on business of jewellery. Apart from the said business, the assessee invested in shares and treats shares as investment in his books of account. This itself manifest the intention of the assessee as to whether he proposed into dealing in shares or earn dividend and profit out of such investment. ....

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....ther assets where the holding period to treat such asset a long-term is more than 36 months. Thus, even after holding the shares for more than 12 months and showing such intention from the conduct, the Assessing Officer cannot replace his opinion for that of the assessee in holding that the shares are held as stock-in-trade and profit from which is to be assessed as business income. In all such ca....

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....n the course of the day of trading itself or in the settlement period itself so as to avoid payment of full purchase price. Here the assessee has been holding the shares by taking delivery and making full payment for such investment. In such circumstances, the transactions are to be treated as giving rise to the capital gain and cannot be branded as trading of making invest-ment so as to determine....